Financial new year resolutions which will help you in growing money
New year is coming and it is time to reflect on past year and make some financial new year resolutions. We always make lot of resolutions but never go past few months. But consistency is the key to be successful in anything we do. Let us plan our financial future and make some financial resolutions this year to become more financially secure.
Resolution with deadline becomes goal. Goals are important to achieve anything we want in life. Financial goals help in maintaining an environment of financial security where you have money for all of your basic needs and for future.
Sometimes it becomes necessary to take charge of your finances and money to secure your future. Let us plan this year and take some steps to reduce debt, increase savings and create an investment portfolio.
1. Review your last year for financial choices you made
To move further, it is really important to see what we did in our past. Same is with our personal finance. Analyse your past year and try to figure out what you did wrong in your last year and where you can improve in present year.
2. Identify financial goals
Write down what you want to save, invest or buy this year. Identify your financial goals. Classify them into
- Short term
- Medium term
- Long term goals
After classification, figure out how much time you will need to accomplish them. Having clear goals prompt you to take action to achieve what you want.
3. Start making budgets
I know , you know this one and is getting very good on budgeting. Stick to it. If you haven’t started yet then start making budget and stick to it. Creating a budget always spare some money to invest and save even if it is few dollars.
Making budgets have helped everybody who made it.
4. Identify your bad money habits
We all have some good or bad habits. It implies to money habits also. Figure out them and try to improve them. Write down all your bad money habits and try to change them. If you have a habit of buying all branded clothes, try to stop that.
Start by cutting the frequency of buying the clothes. It is okay to buy sometimes according to your taste. After all we are doing everything to make us happy.
5. Get out of debt
Getting out of debt may take some time but if you want to reduce your debt, you have to make some goals about it. Start by paying extra than your minimum payments even if it is in small denominations.
6. Automate your savings
This one is my favourite because when you automate your savings, you don’t have to worry about saving some money in your saving account. Your money will automatically be saved. When you have money in your easy to access account, you may be tempted to spend that money.
It is better automate your savings and from there you can think of investing that money.
7. Start an emergency fund
This should be the most important part of your financial security. Make an emergency fund which will cover at-least 3 months of your income. This will give you a cushion to your finances. When you have some money in your emergency fund, you will become more peaceful and calm.
8. Plan no spend days/month/ week
Some of the spending like mortgage and bills are necessary. But you can try to reduce your spending on those things. Plan no spend months, or weeks whatever is easy for you. Though it is not easy to curb that craving of going to shopping, give it a try.
9. Take care of your health
Taking care of your health will save you in the long run. If you take care of your health now, you will reduce your sick days and reduce trips to doctors and medicines. This will save you money as well a healthy person feels happy.
It is said that a healthy mind resides in a healthy body. And a healthy mind can make better decisions for a better life. So take care of your health and wealth will come to you.
10. Read a personal finance book
It is time to read god books on personal finance because no one teaches us how to manage personal money. Make this one of your financial new year resolutions to teach yourself personal finance.
11. Improve credit score
Improving your credit card score will help you in the long run. Having credit cards is necessary and they are not bad if you use them wisely. Having good credit health helps you in having better deals on loans and credit card interest rates.
Better credit score also helps you in having better deals on car insurance, easy approval of house rentals loan approvals.
12. Reduce credit card use
If you feel like you are not using your credit cards wisely, it is better to stop using them. Having bad credit decreases your credit score and makes your mind stressful. Having credit cards and using them optimally is a good idea but if you are stressing about the accumulating debt, it is best to avoid that.
Stop using credit cards and stay calm.
13. Increase your retirement contribution
Increase your retirement contribution because the payments which you make for your retirement fund are non taxable. It is a good idea to save money when you are in your prime earning age. Remember, you will need same amount of money for our life even after retirement.
14. Cancel unused subscriptions
There is no use of having any unused subscriptions. Cancel them or don’t renew them in new year. All the magazines and apps which you don’t need but spend money on will always take lot of money out of your pocket.Write all the subscriptions you have on paper and cancel which you don’t want.
Transfer that amount of money in to a high yielding account. Always save the money immediately to your account other wise you will be tempted to spend that money on something else. Remember, you cancelled those subscriptions to save money. Go for it.
15. Investing should be one of your financial new year resolutions
This is my number one priority in this coming year. I am new to investing. I have already started some micro investing with Raiz. But I am planning to start some big investments this year. Let us see how will my investment go this year. If you are new to investing
16. Start some side income stream
Make this year special by starting some side hustle. If you have some hobby or skill, put that into use for earning some money. Side hustles are great for earning extra money. Internet has opened many doors to earn money. You just need to figure out your niche.
17. Stick to your financial new year resolutions
Now that you have got your financial resolutions into place, it is time to stick to them and make them successful. This is so important because consistency is the key for anything. Success in each and every area of life comes from inspiration, determination and consistency.
Let us make this year better than previous year and be financial savvy.
- How to save money on gas bills
- 21 tips to save money for deposit for home loan
- 5 tips to save money on groceries right now
- Greatest list of side hustles to make extra money
These are my ideas on making some financial resolutions and sticking to them this year. Learning ti invest is my most important goal for this year. And I hope I will go beyond my basic knowledge of investment and stocks.
A tiny request
Please share this post, if you like it. I will be really thankful to you for this.